We can speculate about why legal language is so opaque. But
whether legalese is a conspiracy against the laity, the result of
institutional inertia--or something else entirely--really
doesn't matter. Most contracts are written in this bulky
dialect and, like it or not, we all have to deal with it. Of
course, for the well-financed deal-maker, legalese is nothing more
than an annoyance--their attorneys take care of it. But if
you're not budgeted for professional help, or if your deal is
too small to justify legal fees, what should you do?

For one thing, don't despair. Read the paperwork anyway. At
least you can double-check material terms: how much, what, where
and so on. Even the best professional can miss something; another
pair of eyes doesn't hurt. Then, do your best. When you must
read agreements without the help of a lawyer, follow these
rules:

1. Read slowly. Read every
word. Reviewing contracts can be incredibly boring, so be prepared
to spend some time.

2. Read literally. Contracts
are scientific in their precision. Approach these documents
concretely. A legal dictionary is also a good idea.

3. Go back and double-check all the
cross-references. Again, read literally.

4. Watch out for defined
terms. Insurance companies limit their exposure by the
way they define "covered loss," "insurable
event" and the like. In the music business, some record
companies define "net sales" as 85 percent of actual
sales. It may or may not be justified, but it does mean that every
time you read the phrase "net sales," you're getting
15 percent less than you think.

5. If you don't know what it means,
ask. Try to get an intelligent answer (in writing, if
possible).

Finally, never forget that the printed word is mightier than the
spoken one. A loan officer at the bank may assure you that
you've got four years to repay, but if you signed a promissory
note payable "on demand," you could be in for a rude
awakening.

A speaker and attorney in Los Angeles, Marc Diener is the author of
Deal Power.